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I don't think the physical amount of dollars matters as much as most people do. Credit spends the same as money, so I view total credit as the real thing to wa
by recursivedoubts 5y ago
I don't think the physical amount of dollars matters as much as most people do. Credit spends the same as money, so I view total credit as the real thing to watch.
That's one reason why, given the insane fiscal and monetary policy of the last two decades, we really haven't seen hyperinflation yet (and, in fact, briefly saw deflation.)
It's an unorthodox take, admittedly, but Steve Keen is a good economist to read on the topic.
- bko 5y agoTotal bank credit jumped 5% in about a month when the pandemic started and is continuing to grow at a very high rate historically. This is in addition to personal savings rate jumping from around 7% to over 30%. There's a lot of money and credit is amplifying it https://fred.stlouisfed.org/series/TOTBKCR https://fred.stlouisfed.org/series/TOTBKCR https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT